11-1 Chapter Questions How do marketers identify primary competitors? How should we analyze competition? –strategies, objectives, strengths, and weaknesses How can market leaders expand the total market and defend market share? How should market challengers attack market leaders? How can market followers compete effectively?

11-2 Economic View of Competition Pure Monopoly Oligopoly Monopolistic Competition Pure Competition

11-3 Competition isn’t always bad! Bill Cade’s crickets Furniture industry Satellite radio WHEN?

11-4 Forces Determining Segment Attractiveness

11-5 Identifying Competitors

11-6 Analyzing Competitors Share of market Share of mind Share of heart

11-7 Hypothetical Market Structure 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader

11-8 Two ways to expand: New customers More usage

11-9 Optimal Market Share

11-10 Question Why do profits often decrease as market share expands?

11-11 Competitive Players Market Challengers Market Nichers Market Followers

11-12 Market Follower

11-13 Market Niche

11-14 Fast Food Study McDonald’s is the market leader The “lighting rod” of criticism 1986 Hardee’s tries lower fat, no one follows. April 1991 McDonald’s introduces McLean July KFC and Arbys’ low fat products 2000 Subway becomes niche player (sandwiches)

11-15 Balancing Orientations Competitor- Centered Customer- Centered

11-16 Group Discussion How do you attack a Category Leader? Take a position: 1.The best way to challenge a leader is to attack its strengths. 2. The best way to attack a leader is to adopt a flanking strategy.